Monthly Archives: October 2015

Payment Types || Important Payment Terms And Its Uses In Business Dealings

Payment is the major points in business dealings. The payment is done between the seller and the buyer. This payment is done in various ways. I have written about the quotation and price fixation methods of products. All of the dealings become success by a payment. When a manufacturer gets his or her payment he or she becomes very happy. He becomes interested to deal more with that’s buyer.

In the modern age, most of the payment is done in online banking system. So, it becomes easy to get the payment within a short time. When a seller deals with a domestic or foreign buyer he or she should maintain a clear dealing methods. Different payment terms are used for these dealings.

Payments types: Business man follows some payment methods during dealings. They are-

  1. Spot Cash: If the buyer gives the payment during goods receiving then this dealing is called spot cash. Cash is given in hand to hand.
  2. Prompt Cash: If the buyer gives the payment within short time after sending goods challan.
  3. Net Cash: If the payment fixed after reducing commission and other expenses then it is called net cash. It is the actual cost of the goods.
  4. Cash With Order (C.W.O): If the buyer sends money during goods order then it is called cash with order. Buyer gives order with money.
  5. Cash on Delivery: If the buyer gives payment during goods receiving then it is called cash on delivery.
  6. Deferred payment: Sometimes buyer gives payment at a time or with some installment after receiving the goods that is called deferred payment system. Most the dealing is done in this process.
  7. Bill of Lading: In this bill all the information about the goods are enlisted.

So, there are lots of payment systems of business. The payment status depends on the size of payment. During payment, seller should give the vat and other excise duty of that’s country. It is need to take clearance of that’s country.

So, take decision by which method you will complete your deal. Always give thanks after receive the payment.

Garment Costing || Major Considering Points Before Garment Costing

Hello my dear merchandiser. Hope all of you doing well in your work place. Garment costing is very common to all of you. All of you know about the procedure by which one can calculate the cost of manufacturing goods. You can give quotation for a product which is also important for a merchandiser. Here, I like to share my experience to you. I think that could be very helpful for the fresh merchandiser and experienced merchandiser who have practical experience in this field.

Garment Costing: Garment is the fashion of the world. Now days, men take the apparel as a fashion. Different types of apparel are manufactured by the manufacturer. Garment costing is done by considering all the cost regarding to manufacturing the garment. Costing is the process to estimate the total cost of apparel manufacturing. A merchandiser fixed the price of the garment by considering from the raw materials cost to final product cost. Costing also consider the quotation process and profit of the products. By doing all of that’s task the merchandiser fixed the price of the garments.

Major Considering Points before Garment Costing: Garment costing is very easy task if anyone has enough knowledge about all the process stage of manufacturing. Here, I have mentioned some major points which should consider before garment costing. They are-

  • Fabrication: Manufacturer is the seller of the products. The manufacturer makes the products as the willing of the buyer. Before taking an order the merchandiser should confirm about the fabrication of the products. The merchandiser should confirm the strong source of fabric supply.
  • Fabric Color: Merchandiser should confirm about the fabric color. How many colors and style will be? What is the color ratio of the total quantity?
  • Size Specification: Buyer will confirm about the size of the garment. They will give the sample which is approved for bulk production. Merchandiser will confirm the PO sheet which is considered before garment costing.
  • Quantity: Merchandiser will confirm about the approximate quantity before garment costing.
  • Shipment Date: Merchandiser will fix the shipment date by discussing with the buyer.
  • Test Requirement: Merchandiser will confirm that the product shall test or not.
  • Inspection: Most of the buyer inspects the product before taking the delivery. Merchandiser will confirm the inspection process whether it inspect directly by the buyer or third party. If third party inspect the products then who will pay the charges.
  • L/C Payment Terms: Merchandiser will follow all the terms and conditions of L/C.
  • GSP: GSP is another important term before garment costing.

So, there are lots of points which must considered by a merchandiser before garment costing. This costing could be in a buying house or in the export department of a garment manufacturing unit.

Price Quotation Of A Products || Contents Of Price Quotation

Price quotation is very important for the both buyer and seller. The understanding between the seller and buyer should be fine. When a seller gives a quotation he or she should be careful. The quotation letter should contain all the information which is required for understanding all the points of dealing. The price is fixed by analyzing all the cost seen and unseen in a process. The price fixation should be fine.

In garment pricing, the merchandiser will be well known about the process sequence of apparel. In the other hand, in jute section, the merchandiser should know about the price of jute materials, process cost, over head cost, maintenance cost, carrying cost and other cost which is required for exporting jute goods in domestic or abroad. Main fact is that, a well knowledge person can give price quotation which is suitable with the present situation.

Contents of Price Quotation: Quotation is the letter of dealings. In a quotation followings points should be contain. They are-

  1. Type of quotation.
  2. Quality of the products offered for sale.
  3. Total quantity of the products offered for sale.
  4. Sale price of unit products.
  5. Total sum of price of the products.
  6. Payment types like cash or credit, cash discount, cash discount and other allowances.
  7. Duties details.
  8. Shipment date, time and place.
  9. Packing, labeling and insurance details.
  10. Error and omission expected (E and O.E).
  11. List of destination of the documents copy.

So, lots of points should be maintained in the price quotation. One can give additional information in the quotation it depends on the buyer requirement.

To get best buyer the seller should send the best possible quotation. On depends on the quotation, the will place an order because it is the basis on which the interested buyer decides whether to buy or not.

At last, the price quotation of products should be courteous, clear and concise.